Businesses engaged in industrial activities such as manufacturing, processing, and other related activities are required to obtain the industrial license issued by the Dubai Department of Economic Development (DED). However, unlike other types of licenses, the businesses need to secure approvals from various government departments to establish an industrial company in Dubai. Since the process involves the approval of various government departments, it is advisable to seek the help of business setup consultants in Dubai.
The Industrial sector has evolved to be the third largest sector in Dubai after Trade & Logistics. The sector has contributed 11-14% of Dubai’s GDP and exhibited strong growth in recent years overpowering the global recession.
Business Activities Permitted under Dubai Industrial License
The DED defines the companies that are eligible for the industrial license as the businesses that convert raw materials and natural resources into finished goods. This conversion or alteration of raw materials can be based on structure or appearance. Such activities fall under the broader categories of production of goods or packaging. The following are some of the major activities permitted under the industrial license:
- Processing of raw materials
- Extracting petroleum and metals
- Textile manufacturing
- Casting of metals
- Manufacturing of appliances & machinery
- Production of food products
- Paper goods manufacturing
- Manufacturing structural steel
- Collection of waste & treatment
- Glass industries
- Wood, wood products, furniture manufacturing
- Plastic industries
- Motor vehicles manufacturing
- Processing of meat
- Light aircraft manufacturing
The Procedure of Getting an Industrial License in Dubai
Before you apply for an Industrial License make sure that you are through with all the below-mentioned requirements. They are as follows:
Local Sponsor
Foreign investors who want to set up a manufacturing business in Dubai with an industrial license are required to have a local sponsor. This requirement is mandatory and the local sponsor would hold 51% of the share.
Physical Office
The Dubai DED stipulates the requirement that the businesses need to have a physical address to grant the industrial license. The company also must have a warehouse in Dubai. The DED does not accept virtual offices for issuing the industrial license.
To open or making changes to the factory, the investor must obtain approvals from Dubai authorities. The application for the industrial license can be made to the DED in the following steps:
- Choose a Business Activity
- Legal Form
- Decide on a trade name
- Get DED’s Initial Approval
- MOA & LSA Agreement
- Establish a Business Location
- Approvals from Concerned Authorities
- Issuance of License
Businesses could ease the process of obtaining a Dubai industrial license by hiring a company formation consultant who can manage the entire process on behalf of the investor. Leading business setup consultants in Dubai could easily handle the paper works and secure the approvals as they are well-versed in local laws and regulations.
Company formation specialists in Dubai also advise the businesses to check the following information before applying for the License:
- Details of Manufacturing Technology Used
- Details of environment, health& safety arrangements
- Information on Raw Materials used
- List of Equipment& Machinery
- Information on Waste Generated
Documents Required for Obtaining Industry License
- Company Registration
- Passport of shareholder
- MOA with local sponsor & shareholders
- A blueprint of the factory plan
- The business model of factory
- Feasibility study of the industrial facility
- Data on the cost of production
- Proof of financial backing for the business
- Location plan
- Land lease agreement
Approvals Required to Obtain Industrial License
- Approval from the UAE Ministry of Economy
- Approval from Dubai Municipality
- Approval from Dubai Electricity and Water Authority (DEWA)
- Approval from Dubai Health Ministry (for manufacturing pharmaceutical goods)
- Approval from UAE Ministry of Interior
Advantage of Setting up a Business in Dubai with Industrial License
Dubai is the ideal business location for setting up manufacturing businesses or industrial enterprises. The following reasons would justify why Dubai is still the perfect place for the industrial sector.
- Modern Industrial infrastructure
- A diversified group of global customer base
- Opportunity to attract additional investments
- Easy availability of workers of various nationalities
- Creation of new business opportunities
Dubai Industrial Strategy 2030
The Dubai industrial strategy 2030 was envisioned in 2016 to enhance the emirate’s total output and value addition of the manufacturing industry. The strategy aims for elevating Dubai a favourite destination for global manufacturing industries and attract an additional AED 160 billion by 2030. The strategy identified certain key areas for the industrial sector development:
- Aerospace
- Maritime
- Aluminium and Fabricated Metals
- Pharmaceuticals and Medical Equipment
- Food and Beverage
- Machinery and Equipment
Why Choose Jitendra Business Consultants?
Choosing the best and reliable business setup consultants in Dubai, UAE would make the process of forming an industrial sector business. The clients of Jitendra Business Consultants (JBC) are proof that how a company formation specialist could help them achieve their dreams in a land of opportunities like Dubai. JBC has succeeded in creating a client base of business achievers due to our commitment, reliability and no compromise in ensuring the quality of services. JBC’s highly experienced business setup consultants are the best in the UAE who provide top-notch company formation solutions to investors, individual entrepreneurs and multinational corporations. JBC’s company formation specialists would assist businessmen in all steps of setting up a business in Dubai from the paper works, necessary approvals from relevant authorities till company incorporation.